Paysafe rejects allegations of illegal gambling

14 December 2016

Paysafe Group has denied allegations from Spotlight Research that it is enabling illegal gambling and capital control evasion in China.

The company responded to the claims after shares yesterday (Tuesday) fell by 38% to 230.1 pence (273.3 € cents/$290.8 $ cents) after the release of the Spotlight report.

The price had recovered to around 305 pence by the end of the day, and was trading at around 308p by lunchtime today (Wednesday).

Spotlight alleged that Paysafe's largest customer, most likely to be Bet365 and which represents around 50% of its earnings, is operating a business that appears to facilitate and engage in illegal gambling in China.

Paysafe does not disclose that Gibraltar-based Bet365 is its largest customer, the identity of which has long been a mystery.

In a statement, Paysafe said that all material information featured in the report is “either factually inaccurate or has been previously disclosed”, adding Spotlight had “disclosed a potential short interest” and stood to gain on a drop in Paysafe shares.

Paysafe added: “The group has a history of significant, transparent disclosure to the market, publishing two prospectuses in 2015 and being subject to substantial additional scrutiny through a full UKLA listing process as part of its move to the Main Market of the London Stock Exchange.

“Having reiterated its upgraded guidance for the current financial year on November 8, 2016, the company's business continues to perform well and management is next scheduled to update the market on January 12, 2017.”

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